Hey everyone! Hope you all are having a great day.
Just a quick question.....Most investors I talk to all say the same thing. Get a LLC!
How much do they cost on average?
To my memory you will spend around $325-$350 to get one set up. Also keep in mind you will also have to have yearly renewal fees in the estimated amount of $325. Then if you do any deals with your LLC you will have to file a tax return for it.
If protection is what you are concerned about then get more insurance coverage.
I had one created by an attorney and one with Legal Zoom. They look about the same and both cost about $300-350 (in Iowa). Some people might say if you have no personal assets what is the LLC protecting? I suppose it depends on your assets and investment goals. I have purchased all but my first property in an LLC.
They are super cheap in Missouri like $50.00. I looked up in your state. See the link below.
Organizing an LLC should be fairly easy and cost effective. As an attorney, I have done this before, in several states. Go to your state's secretary of state's office and follow the guide.
If you are partnering with another person, I recommend an LLC, and I also recommend an operating agreement. The OA governs how the relationship will work. Without one, state default rules apply, which you may not want.
Even without a partner, you may find an LLC helpful in terms of tax benefits. However, before I tread in water to far away from my expertise, I defer you to your accountant.
It's $50 to register with the state in Iowa but banks have asked me for the Articles of Organization and the Operating Agreement. That is what cost $300, just to be clear.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing